Tax liabilities worth €60 million erased, more than 22,000 businesses to benefit

The Tax Administration has completed the first phase of implementing the law on the conditional forgiveness of unpaid tax liabilities. More than 22,000 taxpayers have benefited from the process, with tax debts totaling approximately €60 million either written off or extinguished.

According to the Tax Administration, the process will continue with the second phase, which provides for the forgiveness of up to 25% of the principal tax liability for the 2015–2019 period, for taxpayers who settle their payments by the deadline of December 31, 2026.

Under Instruction No. 11, dated May 14, 2026, within 20 days of its entry into force, the Tax Administration will compile the full list of taxpayers eligible for debt forgiveness, as well as those who do not qualify.

Only taxpayers who do not meet the eligibility criteria will be notified electronically through the e-Filing system. Once this process is completed, the Tax Administration will proceed with the automatic offsetting of excess VAT credits or other tax credits against existing tax liabilities.

The law provides for the full cancellation of unpaid tax liabilities incurred up to December 31, 2014, including fines and late-payment interest. However, for social and health insurance contributions, the principal amount of the debt is not eligible for forgiveness.

For tax liabilities incurred between January 1, 2015, and December 31, 2019, the law provides two relief schemes. Taxpayers who paid 50% of their outstanding principal debt within the initial deadline are eligible to have the remaining 50% forgiven. Meanwhile, taxpayers who settle their payments by December 31, 2026, are eligible for a 25% reduction of the principal tax liability. In both cases, all fines and late-payment interest are fully waived.

For liabilities incurred during the 2020–2024 period, fines and late-payment interest will be canceled, provided that the full principal tax amount is paid within the legal deadline.

The law also provides for the cancellation of tax liabilities for businesses deregistered by the end of 2024, the forgiveness of penalties for late tax filings, late submission of financial statements, and a range of other administrative fines imposed up to December 31, 2024.

Excluded from these benefits are taxpayers who have been convicted by a final court decision of tax or customs-related criminal offenses, those currently under investigation or trial for such offenses, and taxpayers against whom there is a court ruling in favor of the Tax or Customs Administration.

Taxpayers with cases under administrative appeal or judicial review may benefit from the law only if they withdraw their appeal or lawsuit in accordance with the prescribed procedures. The Tax Administration urges taxpayers to check their status through the e-Filing system and complete the required payments within the applicable deadlines to qualify for the relief measures provided by the law.

“KORÇA BOOM”